Canadian Halal Investor.

TSX Shariah screener · October 2026

Is Cannara Biotech Inc. (LOVE) Halal?

FAIL

Cannara Biotech Inc. · TSX: LOVE · Healthcare

The short answer

No — Cannara Biotech (LOVE) does not pass this Shariah stock screen. It is a vertically integrated cannabis producer (two Québec cultivation facilities, brands Tribal, Nugz and Orchid CBD, Health Canada licences under the Cannabis Act), and cannabis cultivation and production is a prohibited (haram) line — so it fails at Gate 1 regardless of its finances. For the record: interest-bearing debt of C$37.0M is about 17.4% of its ~C$212.4M market cap (98,782,148 shares at C$2.15, Oct 1, 2026), within the ~33% ceiling, and interest income of C$308,602 is about 0.35% of nine-month revenue — the financial gates would pass on their own. No Zoya, Musaffa, or ShariaPortfolio rating was found for this ticker — honestly reported as absent, not invented.

Gate 1 — Business activity: FAIL

Cannara Biotech Inc. (TSX: LOVE) is a vertically integrated cannabis producer. Its Q3 2026 interim financial statements describe it as 'a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Canadian market,' operating two mega cultivation facilities in Québec (Farnham and Valleyfield) spanning over 1,600,000 sq. ft. All cannabis operations run through its subsidiary Cannara Biotech (Quebec) Inc., which holds active licences issued by Health Canada under the Cannabis Act. Products — dried flower, pre-rolls, vapes, concentrates, hash and CBD formats — are sold under three flagship brands: Tribal, Nugz and Orchid CBD, through Canada's regulated market. The company graduated from the TSX Venture Exchange to the TSX on March 2, 2026. Cannabis cultivation, production and sale is a prohibited (haram) line under this screen. Gate 1 fails. Facts only.

Gate 2 — Debt and cash: PASS

Interest-bearing debt at May 31, 2026 was C$37.0M — term loan C$27.2M (C$24.75M non-current plus C$2.46M current portion), revolving credit facilities C$6.8M, long-term credit facility C$1.8M (incl. C$0.2M current portion), other long-term debt C$1.0M, and lease liabilities C$0.2M — per the Q3 2026 condensed interim consolidated statements of financial position. The Olymbec convertible debenture outstanding at Aug 31, 2025 was fully converted into 3,462,763 common shares during the period. Debt ÷ market cap is about 17.4% against a market cap of roughly C$212.4M (98,782,148 shares at C$2.15, Oct 1, 2026) — within the ~33% ceiling. Cash of C$21.8M is about 10.3% of market cap. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Interest income was C$308,602 for the nine months ended May 31, 2026 (note 12 to the interim financial statements), against total revenues of C$89.1M — about 0.35% of revenue, far below the 5% non-compliant income limit. Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Cannara Biotech do?

Cannara Biotech Inc. (TSX: LOVE) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Canadian market. It owns two mega cultivation facilities in Québec (Farnham and Valleyfield) spanning over 1,600,000 sq. ft., conducts all cannabis operations through its subsidiary Cannara Biotech (Quebec) Inc., which holds active Health Canada licences under the Cannabis Act, and sells under three flagship brands — Tribal, Nugz and Orchid CBD — including dried flower, pre-rolls, vapes, concentrates, hash and CBD formats through Canada's regulated market. The company graduated from the TSX Venture Exchange to the TSX on March 2, 2026.

Why does Cannara Biotech fail this Shariah stock screen?

Cannabis cultivation, production and sale is a prohibited (haram) line under this screen. Cannara Biotech's entire business is a vertically integrated cannabis producer — two Québec cultivation facilities, Health Canada licences under the Cannabis Act, and the Tribal, Nugz and Orchid CBD brands — so it fails at Gate 1 regardless of its finances. This is a factual screen, not a religious ruling — consult a qualified scholar for personal guidance.

What is Cannara Biotech's interest-bearing debt ratio?

At May 31, 2026, interest-bearing debt was C$37.0M — term loan C$27.2M (C$24.75M non-current plus C$2.46M current portion), revolving credit facilities C$6.8M, long-term credit facility C$1.8M (incl. C$0.2M current portion), other long-term debt C$1.0M, and lease liabilities C$0.2M — per the Q3 2026 condensed interim consolidated statements of financial position. The Olymbec convertible debenture outstanding at August 31, 2025 was fully converted into 3,462,763 common shares during the period. With 98,782,148 shares outstanding trading at C$2.15 on Oct 1, 2026, the market cap is roughly C$212.4M, so debt ÷ market cap is about 17.4% — within the ~33% ceiling. Cash of C$21.8M is about 10.3% of market cap. Gate 2 passes on its own.

What is Cannara Biotech's non-compliant income ratio?

Cannara reported interest income of C$308,602 for the nine months ended May 31, 2026 (note 12 to the interim financial statements), against total revenues of C$89.1M — about 0.35% of revenue, far below the 5% non-compliant income limit. Gate 3 passes on its own; the screen failure is entirely at the business gate.

Do Zoya, Musaffa, or ShariaPortfolio cover Cannara Biotech?

No rating or coverage of Cannara Biotech (TSX: LOVE) was found on Zoya, Musaffa, or ShariaPortfolio — honestly reported as absent, not invented. This page applies the screen directly from the company's filings: the Q3 2026 results release (Jul 15, 2026) and the condensed interim consolidated financial statements for the three and nine months ended May 31, 2026.

Sources

Screened 2026-10-01 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).